Page:United States Statutes at Large Volume 106 Part 1.djvu/558

 106 STAT. 526 PUBLIC LAW 102-325—JULY 23, 1992 purposes of this paragraph, such total attributable amount does not include amounts of outstanding loans transferred to the guaremty agency from another guaranty agency pursuant to a plan of the Secretary in response to the insolvency of the latter such guaranty agency. The minimum reserve level shall increase to— "(i).7 percent of such total attributable amount for the fiscjj year of the agency that begins in 1994; "(ii).9 percent of such total attributable amount for the fiscal year of the agency that begins in 1995; and "(iii) 1.1 percent of such total attributable amount for each fiscal year of the agency that begins on or after January 1, 1996. "(B) The Secretary shall collect, on an annual basis, information from each guaranty agency having an agreement under this subsection to enable the Secretary to evaluate the financial solvency of each such agency. The information collected shall include the level of such agency's current reserves, cash disbursements and accounts receivable. "(C) If (i) any guaranty agency falls below the required minimum reserve level in any 2 consecutive years, (ii) any guaranty agenc^s Federal reimbursement payments are reduced to 80 percent pursuant to section 428(c)(l)(B)(ii), or (iii) the Secretary determines that the administrative or financied condition of a guaranty agency jeopardizes such agency's continued ability to perform its responsibilities under its guaranty agreement, then the Secretary shall require the guaranty agency to submit and implement a management plan acceptable to the Secretary within 30 working days of any such event. "(D) Each management plan described in subparagraph (C) shall include the means by which the guaranty agency will improve its financial and administrative condition to the required level within 18 months. (E) The Secretary may terminate a guaranty agency's agreement in accordance with subparagraph (F) if— "(i) a guaranty agency required to submit a management plan under this paragraph fails to submit a plan that IS acceptable to the Secretary; "(ii) the Secretary determines that a guaranty agency has failed to improve substantially its administrative and financial condition; or "(iii) the Secretary determines that the guaranty agency is in danger of financial collapse. "(F) Except as provided in subparagraph (G), if a guaranty agency's agreement under this subsection is terminated pursuant to subparagraph (E), then the Secretary shall assume responsibility for all functions of the guaranty agency under the loan insurance program of such agency. In performing such fimctions the Secretary is authorized to— "(i) permit the transfer of guarantees to another guaranty agency; "(ii) revoke the reinsurance agreement of the guaranty agency at a specified date, so as to require the merger, consolidation, or termination of the guaranty agency; "(iii) tremsfer guarantees to the Department of Education for the purpose of payment of such claims and process such claims using the claims standards of the guaranty

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